Slide 1: Aecon Group Inc. Q3 2019 Conference Call Presentation
AECON GROUP INC. (TSX:ARE) Q3 2019 CONFERENCE CALL PRESENTATION November 1, 2019
Slide 2: Forward-Looking Information
Forward-Looking Information The information in this presentation includes certain forward-looking statements. Although these forward-looking statements are based on currently available competitive, financial and economic data and operating plans, they are subject to risks and uncertainties. In addit
Slide 3: Q3 2019 Financial Results - Reported
Q3 2019 Financial Results - Reported $ Millions Three Months Ended Trailing Twelve Months Ended (except EPS, $ per share) Sep 30* Sep 30* 2019 2018 Change+ 2019 2018 Change+ Revenue 1,025.4 1,019.7 1% 3,492 3,003 16% Gross Profit 120.6 125.1 4% 369.2 348.7 6% Gross Margin % 11.8% 12.3% 50 bps 10.6%
Slide 4: Q3 2019 Results – Excluding Contract Mining
Q3 2019 Results – Excluding Contract Mining Three Months Ended Trailing Twelve Months Ended $ Millions Sep 30* Sep 30* 2019 2018 Change+ 2019 2018 Change+ Revenue 1,025.4 955.2 7% 3,451 2,799 23% Gross Profit 120.6 116.3 4% 363.0 321.3 13% Gross Margin % 11.8% 12.2% 40 bps 10.5% 11.5% 100 bps Adjust
Slide 5: Construction Q3 2019 Results
Construction Q3 2019 Results Revenue up by $7M, or 1%, year-over-year Revenue ($M) Revenue ($M) $99M in Civil and Urban Transportation Systems driven by +1% $993 $1,000 increases in both eastern and western Canada +16% $3,409 $2,949 $32M in Nuclear from refurbishment work in Ontario $83M in Conventi
Slide 6: Concessions Q3 2019 Results
Concessions Q3 2019 Results Revenue ($M) Revenue down by $9M, or 13%, year-over-year Revenue ($M) $71 ▪ Primarily driven by decreased construction activities related to the -13% +36% $248 $62 Bermuda International Airport Redevelopment Project $183 Q3 2018 Q3 2019 Q3 2018 TTM Q3 2019 TTM TRAILING TW
Slide 7: Diverse & Resilient Business Model
Diverse & Resilient Business Model CONSTRUCTION CONCESSIONS Q3 2019 TTM Revenue $3,409 M + Q3 2019 TTM Revenue $248 M + Q3 2019 TTM EBITDA $179 M + Q3 2019 TTM EBITDA $91 M + Utilities 20%* Bermuda Airport Transportation 100%^ 16%* Civil Conventional 39%* Industrial 17%* Eglinton LRT Finch West LRT
Slide 8: Strong Backlog & Recurring Revenue
Strong Backlog & Recurring Revenue TOTAL BACKLOG* ($M) BACKLOG DURATION* ($M) RECURRING REVENUE*^ ($M) AS AT SEP 30 AS AT SEP 30 $4,319 $7,005 $6,557 $4,319 $7,005 $6,557 $458 $514 $526 $23 -6% $50 +2% +12% $78 $80 +62% $44 $3,592 $2,317 $16 $6,982 $1,946 $1,758 $6,507 $436 $446 $1,375 $414 $4,303 $
Slide 9: Strong & Liquid Balance Sheet to Support Growth
Strong & Liquid Balance Sheet to Support Growth BALANCE SHEET ($M) DEBT TO ADJUSTED EBITDA*^+# Sep 30, 2019 Core Cash^ 12.8 2.5x 2.0x 2.0x 2.0x Cash in Joint Ventures^ 473.6 2.0x 1.7x Total Cash^ 486.4 1.5x 1.4x 1.0x 0.9x 0.9x 0.9x 1.0x Working Capital 324.0 0.5x 0.3x 0.5x 0.5x 0.1x 0.0x # Long-Term
Slide 10: Free Cash Flow
Free Cash Flow FREE CASH FLOW ($M) Q3 2019 Y/E KEY DRIVERS FOR TTM 2018 FREE CASH FLOW MOMENTUM Adjusted EBITDA 232.7 207.0 ▪ TTM working capital increase due to strong Cash Interest Expense (net) (34.4) (33.0) revenue growth. Year end 2018 benefited from Capital Expenditures (net) (51.2) (43.0) sig
Slide 11: Positive Outlook
Positive Outlook Strong future revenue profile, new opportunities, and year-to-date performance and execution, supports an expectation of like-for-like revenue and Adjusted EBITDA growth in 2019 and in 2020 ▪ Continue to see significant infrastructure investment commitments by all levels of governme
Slide 12: Appendix
APPENDIX
Slide 13: EBITDA Contribution by Segment
EBITDA Contribution by Segment ADJUSTED EBITDA ($ MILLIONS) ADJUSTED EBITDA MARGIN % Q3 2019 Q3 2018 % CHANGE Q3 2019 Q3 2018 BPS CHANGE Construction 73.1 76.5 4% Construction 7.3% 7.7% 40 Concessions 25.2 23.0 10% Concessions 41.0% 32.5% 850 TOTAL* 91.1 89.5 2% TOTAL* 8.9% 8.8% 10 Total Excluding 8
Slide 14: Q3 2019 Financial Results - Adjusted
Q3 2019 Financial Results - Adjusted $ Millions Three Months Ended Trailing Twelve Months Ended (except EPS, $ per share) Sep 30* Sep 30* 2019 2018 Change+ 2019 2018 Change+ Revenue 1,025.4 1,019.7 1% 3,492 3,003 16% Gross Profit 120.6 125.1 4% 369.2 348.7 6% Gross Margin % 11.8% 12.3% 50 bps 10.6%
Slide 15: Investor Relations Contacts
ADAM BORGATTI Senior Vice President Corporate Development & Investor Relations 416.297.2610 | aborgatti@aecon.com PARAG DATTA Director Corporate Development & Investor Relations 416.297.2600 x3724 | pdatta@aecon.com VANCOUVER 1055 Dunsmuir Street, Suite 2124 Vancouver, BC V7X 1G4 CALGARY 110-9th Ave